The Hindu Business Line : Realty market continues growth in Hyderabad

The big weakness in the booming realty sector in Hyderabad for the moment is `ready-to-occupy' properties as far as the corporate world is concerned. This apart, the Hyderabad market continues its buoyancy, attracting both the services and manufacturing sectors.

Giving this picture, realty consultants, Cushman & Wakefield said the increase in land values is expected to continue. However, the State Government's steps to facilitate land for acquisitions in different areas of the city and outskirts, is expected to rein in the rising values to a certain extent.

By making available land the State Government is likely to ensure adequate development of corporate office space in the coming months, the latest snapshot of Hyderabad by the consultants said.

At present, lack of speculative development or ready-to-occupy properties is a growing concern for corporates. Most corporates prefer ready to move in incubation space before expanding and moving into a built-to-suit facility, the Cushman and Wakefield report pointed out.

Rentals firming up

This situation has led to firming up of rental and capital values across micro-markets. In the recent past, some of the corporates which have announced their expansion plans in Hyderabad include Ness, the Israeli IT company, Citigroup, which signed an outsourcing agreement with Satyam in Hyderabad and TCS in Mumbai; Honeywell, which is setting up a new campus within the next year.

The mega project, Fab City, to be set up by SemIndia, has also started taking shape. The State Government is allocating 1,200 acres of land near the upcoming international airport in Shamshabad in addition to providing several incentives, the report added. The other demand drivers, include technology, biotechnology and industrial sector. The better infrastructure and proactive State Policy is expected to bring in commitments from local, national and foreign developers, which in turn would attract global corporates.

Listing the major leased space, the report said Data Monitor has leased 25,000 sq.ft office space in E-Park; Skyworks about 18,500 sq.ft in Pioneer Towers, a fortune 500 ITES company about 95,000 sq.ft in Mindspace; and a large IT major about 180,000 sq.ft , all in Madhapur. The biggest investment/sale has been the ICICI Ventures, Nagarjuna Constructions & Maytas Properties purchase of approximately 5 acres in Jubilee Hills at Rs 23,695 per sq.m.

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